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South Korea digital VAT update

  • Jun 23, 2015 | Richard Asquith

South Korea digital VAT update


The South Korean tax authorities have provided further guidance to foreign providers of electronic services to consumers ahead of the imposition of digital Korean VAT on 1 July 2015.

Korean VAT returns

Registrations by such foreign providers will by required by the NTS, and must be submitted within 20 days of commencement of taxable supplies. VAT returns will be due on a quarterly basis. VAT returns must be filed by the 25th of the month following the reporting period.

Korean VAT on electronic service

Under the Korean VAT Act, Articles 53, the service subject to the new VAT rules include services provided across the internet or other electronic networks including: apps, games, video, films, music, software, e-documents etc.

Korea is following the EU 2015 VAT changes on e-services this year. South Africa brought foreign providers of e-services into its VAT net last year. Japan has the same plans for Consumption Tax in 2015.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.